In the theory of consumer choice, when a person is choosing which good or service to consume, how does he or she select the units of good or service to consume?
a. The person selects the good or service based on need
b. The person selects the units of a good or service that generates the greatest marginal utility. This process continues until there budget is spent.
c. The person selects the units of a good or service that generates the greatest marginal utility per dollar spent. This process continues until the person's budget is spent.
d. The person randomly selects what they buy until the budget is spent.
c
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If a regional trading agreement causes products from member countries to replace imports from nonmember countries, then the regional trading agreement will experience:
a. economic gains. b. trade creation gains. c. trade diversion losses. d. trade perversion
According to ________, the law's assignment of property rights would have no effect on the way resources would end up being used
A) Milton Friedman B) Ronald Coase C) Aaron Director D) George Stigler